April, 2017

Even if you have taken all the steps possible to reduce the amount of tax that you pay, you could still end up paying too much. If you have overpaid, there are ways in which you can obtain a tax rebate and get back the money that is due to you.

In the latest part of our “52 Ways to Save Tax” series, we look at how you pay less tax by claiming back overpaid money that you’re owed.

52 Ways to Save Tax – Part 31: Claim back the tax you have overpaid

There are a number of reasons why you might have paid too much tax. These include:

Your employer has deducted too much tax from your pay

You are on a low income and you have paid tax on savings interest

You sent a tax return and have paid too much tax

You have used your own money for your job (for example on work clothing or fuel)

You live in one country and have an income in another

You were on the wrong tax code for part of the tax year

Claiming back overpaid tax if you’re on PAYE

If too much tax was taken from your PAYE income, you may be able to claim a refund. How you make a claim depends on the tax year in which you paid too much tax. You can make a claim for a tax rebate back to the 2013/14 tax year.

2017/18 tax year – Tell HMRC if your tax code is wrong. If you are due a tax refund, your employer will give you this in your pay.

2016/17 tax year – HMRC will post you a P800 tax calculation if they know you have paid too much tax. You can either claim your refund online or you may receive a cheque.

2015/16 and earlier tax years – You may be able to claim online. You will need your employer’s PAYE number (this is on your P60) and details of any table income/benefits you received.

Claiming back overpaid tax if you sent a tax return

If you submit a tax return, you may still have paid too much tax. You may have:

Entered the wrong amount when you paid your tax bill

Made a chance to your tax return after you submitted it

Stopped being self-employed and have payments on account

If you submitted your tax return online you should log into your HMRC account and ‘request a repayment’ of the tax you have overpaid.

If you submitted a paper tax return, you should call or write to HMRC and explain why you think you paid too much tax. Include your Unique Taxpayer Reference when you write, and you may also need your bank details in order that your tax rebate can be paid directly into your UK bank account.